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Thanks for the great comments, David. I totally agree, but I don’t think many consumers realize that restaurants are paying these hefty fees. The last time I used DoorDash, I bought Chinese food for $25.25. With the delivery fee and tipping, the total was $37.88. So I paid almost $13 in delivery fees and tips. Was it convenient, I suppose. Will I do it again..no. I felt like it was a rip-off. At that price, I’ll just drive down a mile to save $13. I had no idea how the fee structures worked.
The problem with restaurants passing on the cost is that DoorDash still charges a delivery fee, and you tip on top of that. So if the restaurant owner increases prices to cover the commissions, so now we end up paying even more for our $25 meal. A competitor would love this and could see a jump in business. I suppose a restaurant could have a separate menu with pricing for delivery to offset the fees, but this can turn into a management headache.
I’ve talked to restaurant owners who say passing on 20-30% of the commission fees to the consumer will hurt business. Maybe a split of the fees with consumers could be reasonable. I’m not anti-DoorDash, it’s definitely a much-needed service. I just think the fees and commissions should be comparable to the services being offered. If restaurant owners are comfortable with the fees, then so be it. If not, they can consider passing on the costs or bringing delivery in-house.
One thing I know for certain, it’s definitely not as simple as buying a plugin for WordPress, but there are POS systems that have the features built-in to make this happen, especially when working with a trusted POS reseller to handle the tech stuff.
Hi Tunde, thanks for the great question. Here are a few general advantages and benefits you can expect.
1) Faster service – quicker ordering and checkout, assuming you have a reliable POS.
2) Boost productivity – with features like inventory control and employee management.
3) Improves accuracy – Accurate pricing and detailed reporting.
4) Prevents errors – fewer ordering errors and less chances of theft.
5) Various payment and loyalty options give customers more options for making different payment types like credit/debit cards, contactless payments (Apple Pay), and loyalty points.
6) Cloud-based – most modern POS systems are on the cloud and have options for mobile devices, which is almost a requirement for many industries these days.
Anyway, there are just a few I could think of off the top of my head. I hope it helps!
I agree, Marty. The more restaurant owners I talk to, the more I learn that the delivery fees destroy their bottom line. Some are grateful to have a service to help their businesses stay alive, but others, especially small restaurants trying to navigate a pandemic, can’t afford it.
I know dozens of cities and counties have fee caps, but only two states – Washington and Oregon have approved statewide cap limits. States like California, New York, and Texas are considering legislation to limit third-party delivery fees charged. I think that’s a great step in the right direction, but hopefully not too little, too late.
That being said, many restaurant owners have also taken it upon themselves to offer delivery services in-house and said to hell with these services. Some more advanced POS systems offer delivery features, so something to keep in mind.
Hey thanks Thomas! Glad you found the information informative. Feel free to share on your social platforms. :)
Kevin, thanks for taking the time to comment. We actually gave Spoton POS a great rating. We do our best to keep up on the latest pricing, however, we have many reviews on our site and we always recommend that everyone check the source as this is a fast-changing industry.
As far as being wrong about hidden fees, here’s one example of a customer on your BBB page claiming hidden fees, so we report what we find. While I greatly appreciate the feedback and comment, I’m removing the link to your website, since your comment is more promotional in nature.
Thanks for the clarification, Ryan. We’ll get that updated in the review, much appreciate the feedback.